29 March 2011
Clifford Chance advises Shell on $1.3bn refinery sale
International law firm Clifford Chance has advised Shell on its sale of the 272,000 barrel-per-day refinery at Stanlow, the UK's second largest, to Essar Energy plc for an expected amount of approximately $1.3bn (including inventory).
The sale, which is expected to close in the second half of 2011, includes the associated local marketing businesses. The two companies have also agreed an exclusive five year crude supply contract by Shell to Essar and long-term agreements for the supply of products in the UK by Essar to Shell.
John Wilkins, Partner at Clifford Chance, comments: "Following on from the sale of the Heide refinery in Germany last year, this transaction demonstrates a growing appetite for large scale downstream disposals which we generally expect to continue throughout 2011"
Clifford Chance also recently advised Shell on the sale of the Heide Refinery to Klesch & Co Ltd in October 2010, with a team also led by John Wilkins.
Contacts: John Wilkins (lead partner), Richard Tomlinson, Alistair Laing; Real Estate: Michael Edwards (partner), Andrew Hughes; Environment: Nigel Howorth (partner), Katrina Moore, Alex de Keyser; Antitrust: Oliver Bretz (partner), Annalisa Heger; Pensions: Hywel Robinson (partner); Employment: Chris Goodwill (partner), David Sims; IP: Vanessa Marsland (partner); IT: Richard Jones; Corporate: David Lewis (partner).
Shell's legal team included Ikramul Haq of the Downstream Portfolio group, Bob Henderson (UK Head of Legal), Edward Buxton (Property), Bob Carter (IP) and Simon Ludgate (Trading)."